Liberty Capital — Construction Funding
Emergency Working Capital
Construction Working Capital & Equipment Financing in Colorado
When receivables can’t come any sooner. When payroll stressing you out. When an incoming materials order requires liquidity, when mobilization cost is ill-timed, what do you do? What’s your backup plans? Do you have access to Loans For Small Companies in Colorado, line of credit, or working capital option.
This guide compares your options, requirements, and costs—plus how to avoid expensive mistakes.
Use cases: Construction • Heavy Civil • Equipment & Materials • Payroll
- Mobilization & startup costs for new jobs
- Bridge retainage and slow A/R
- Acquire or refinance essential equipment
- Payroll, subs, rentals, and fuel
Working Capital for Colorado Construction Companies
Bank lines, SBA, ABL, factoring, equipment financing & last-resort advances—matched to your cash-conversion cycle.
What Working Capital Covers
Payroll, materials, rentals, fuel, freight, permits, and interest. Fund via cash flow, supplier terms, or external capital.
Funding Categories
- Bank & SBA Lines of Credit
- Asset-Based Lending (A/R + Inventory)
- Invoice Factoring & PO Finance
- Equipment Financing / EFA & Leases
- Short-Term & Revenue-Based Advances
Industries That Rely on Working Capital
- Construction & Trades: deposits, WIP, retainage, slow payments
- Heavy Construction: mobilization, materials, multi-phase billing
- Manufacturing: raw materials, long production, high DSO
- Logistics: fuel & maintenance ahead of A/R
- Healthcare, restaurants, retail, services
Principle: If banks decline, use the least-cost option that preserves cash flow while you improve for cheaper capital later.
Working Capital Options — Side-by-Side Comparison (in Colorado)
| Product | Best For | Speed | Typical Cost | Collateral Focus | Pros | Cons |
|---|---|---|---|---|---|---|
| Business Line of Credit | Ongoing cash needs | Days to weeks | 10–12%+ APR | Cash flow, credit profile | Reusable; interest on draws only | Tougher approval; covenants |
| SBA 7(a) / CAPLines | Larger amounts, longer terms | 2–4 weeks | Prime + 3–6.5% | Repayment ability; collateral | Lower rates; long terms | More documentation |
| Asset-Based Line (ABL) | A/R or inventory-heavy firms | 2–3 weeks | Base + 2–5% | A/R & inventory | Scales with revenue | Monitoring & reporting |
| Invoice Factoring | Slow-pay B2B customers | 2–5 days | 1–5%/mo | Customer creditworthiness | Fast; off-balance sheet | Fee drag; notifications |
| PO Finance | Large orders; supplier prepay | 1–2 weeks | Medium-high fees | Buyer + supplier strength | Accept larger POs | Goods only; complex logistics |
| Sale-Leaseback | Asset-rich, cash-poor | 2–4 weeks | Medium | Equipment value | Unlock equity; keep using asset | Creates lease obligation |
| Revenue-Based Advance | Strong card/online sales | Hours to days | High (30–80% APR) | Future receivables | Fast, flexible approval | Cash squeeze if sales dip |
| Merchant Cash Advance | Last resort only | Same day | Very high (80–200%+ APR) | Future receivables | Fastest funding | Extremely expensive |
Equipment Leasing & EFA Requirements
What underwriters look for—separate checklists for established companies and startups.
Established Companies (24+ months in business)
- Time in Business: 24+ months (12+ possible with strong profile)
- Credit: 650+ FICO preferred; 600–649 considered with compensating factors
- Revenue: $300k+ annual typical; stable deposits with minimal NSFs
- Docs: App-only up to ~$250k; above that—last 3–6 months bank statements, YTD P&L & Balance Sheet; >$500k may require last 2 years business tax returns
- Down Payment: 0–20% depending on credit, equipment type, and age
- Equipment: New or used; typical max age 10–12 years (heavy) or mileage/hour limits
- Insurance: Liability + physical damage; loss payee endorsement
- Guarantee: Personal guarantee common for closely-held businesses
- Structure: FMV or 10% purchase option lease, or EFA (equipment finance agreement)
- Terms & Rates: 24–72 months; ~7.99%–18.99%+ based on risk/equipment
Startups (0–24 months in business)
- Credit: 680+ FICO best; 640–679 possible with higher down payment/co-signer
- Down Payment: 10–35% typical (proof of funds required)
- Docs: Last 3–6 months personal/business bank statements; personal tax returns; equipment quote/invoice
- Experience: Owner resume or industry background strengthens approval
- Plan: Brief business plan or use-case with revenue projections
- Collateral: New equipment favored; used allowed within tighter age/hour limits
- Co-Signer: Helpful for thin credit or lower scores
- Terms & Rates: 24–60 months; ~12.99%–28.99%+ depending on risk
- Maximums: App-only often capped ~$75k–$150k; higher with full docs
Leasing / EFA — Requirements Snapshot
| Criteria | Established | Startup | Notes |
|---|---|---|---|
| Time in Business | 24+ months (12+ case-by-case) | 0–24 months | Experience and cash reserves help |
| FICO | 650+ preferred (=600 possible) | 680+ best; =640 with factors | Lower scores ? higher DP/rate |
| Down Payment | 0–20% | 10–35% | Varies with age/type of equipment |
| Docs | App-only =$250k; bank stmts; financials for larger | Bank stmts, personal returns, invoice, plan | Full-doc for higher approvals |
| Equipment Age | Up to ~10–12 yrs typical | New or newer used preferred | Hour/mileage caps apply |
| Terms | 24–72 months | 24–60 months | Match term to useful life |
| Structures | FMV / 10% Buyout / EFA | FMV / 10% Buyout / EFA | Tax + end-of-term differs |
Industry-Specific Working Capital Solutions
| Industry | Cash Flow Challenges | Recommended Solutions |
|---|---|---|
| Construction & Trades | WIP; retainage; slow A/R | ABL, progress billing factoring, SBA CAPLines, equipment financing |
| Heavy Construction / Civil | Mobilization; materials; multi-phase billing | ABL on A/R & inventory, SBA working capital, sale-leaseback |
| Manufacturing | Raw inventory; long production; high DSO | ABL, factoring, PO finance, sale-leaseback |
| Logistics / Transportation | Fuel & maintenance ahead of payment | Freight factoring, ABL on A/R, equipment refi |
| Restaurants | Payroll + perishables; thin margins | Business LOC, SBA 7(a), temporary advances, leasebacks |
| Retail & E-com | Seasonal inventory; ad spend before sales | Bank/SBA LOC, ABL, marketplace receivable programs |
| Healthcare / Medical | Insurance reimbursement delays | Medical A/R finance, SBA 7(a), bank LOC |
Vendors & Equipment Dealers: Offer Financing at Checkout
Embed financing into your sales process. Faster approvals, higher close rates, bigger average tickets.
Program Highlights
- Co-branded approvals & same-day funding
- Soft-pull pre-quals to protect your customers
- Dealer portal & status transparency
- New & used equipment; A–C credit tiers
Partner With Us
Complete this short form and our dealer team will reach out.
Critical Mistakes to Avoid
Protect cash flow and future borrowing capacity.
What Not to Do (and Better Alternatives)
| Mistake | Why It’s Harmful | Better Alternative |
|---|---|---|
| Stacking multiple daily/weekly debit products | Crushes cash flow; raises default risk; blocks bank/SBA later | Consolidate to one; plan exit to cheaper capital |
| MCA “debt consolidation” / “reverse MCA” | Often just adds another expensive advance | Negotiate with funder; shift to ABL/AR options |
| Stopping payments w/o communication | Defaults, legal action, account freezes | Request written temporary relief or interest-only period |
| Hiding existing advances | Bank statements reveal it; trust destroyed | Be transparent; present a payoff plan |
| Using short-term capital for long-term assets | Term mismatch; refinancing pressure | Match term to asset life (3–7 yrs equipment; 6–18 mo WC) |
| Borrowing the max approval | No cushion; payment stress if revenue slips | Borrow 70–80% of approval; keep reserve |
Emergency Advance Warning Signs
- Can you afford the debit during slow weeks?
- Do you have a 6–12 month refinance plan?
- Will this solve the problem or delay it 90 days?
- Have you exhausted ABL/factoring/sale-leaseback?
If you can’t say “yes” to the first two, pause and restructure.
Owner Strategy: Path to Sustainable Capital
Reduce costs over time while safeguarding cash flow.
Step 1: Start with Cheapest
- Apply to banks/CUs for LOC
- Explore SBA 7(a), CAPLines, WCP
- Obtain decline reasons in writing
- 90-day plan to fix declines
Step 2: Leverage Assets First
- Asset-rich: ABL, sale-leaseback, cash-out refi
- A/R-heavy: selective factoring
- Order-heavy: PO finance
- Compare true APR equivalents
Step 3: Emergency Rules
- If MCA: borrow minimum needed only
- Keep term short (90–180 days)
- Never stack multiple high-cost products
- Begin refinance plan day one
Step 4: Improve Position
- Cut DSO aggressively
- Negotiate longer vendor terms (DPO)
- Build 30–60 day cash reserve
- Clean personal & business credit
- Document recurring revenue & contracts
Guides & Resources
Apply & Contact
Working Capital & MCA
Equipment Leasing Resources
Dealers & Vendors
Business Loans
Frequently Asked Questions
How fast can I get funding in Colorado?
Bank/SBA: 2–4 weeks. ABL: 2–3 weeks. Factoring: 2–5 days. Equipment financing: 24–72 hours app-only; 1–2 weeks full-doc. Revenue-based & MCAs: same day (very expensive—use sparingly).
Will applying hurt my credit?
Bank/SBA often require hard pulls. Many alternatives start with soft pulls and bank analysis. Ask up front which pull they use.
Can I use funds for payroll and materials?
Yes. Match term to your cash conversion cycle—don’t finance long-lived assets with short-term advances.
Do you finance used equipment?
Yes, subject to age/hour/mileage and resale value guidelines. Older assets may require higher down payments.
What if I already have an MCA?
Create an exit plan immediately—transition to ABL, factoring, or SBA as metrics improve. Avoid stacking.
Ready to Get Started?
Pre-qualify in minutes with no obligation. We’ll help you find the most cost-effective solution that matches your cash flow and equipment needs.
What Happens Next?
- Step 1: Complete our secure 5-minute application
- Step 2: Upload docs via encrypted portal (bank statements, tax returns, financials)
- Step 3: Receive preliminary options within 24–48 hours (often faster for equipment)
- Step 4: Review term sheets and choose your best option
- Step 5: Close and receive funding (same-day to 2 weeks by product)